Oil prices rise amid US attacks on Houthis in Yemen
17 March 08:52
Oil prices are on the rise on Monday after the US announced that it will continue strikes on Houthi positions in Yemen. This is reported by "Komersant Ukrainian" with reference to Reuters.
Futures for Brent crude oil rose by 41 cents (0.6%) and as of 05:36 Kyiv time amounted to $70.99 per barrel. US WTI crude also added 40 cents (0.6%), reaching $67.58 per barrel.
The US airstrikes, which the Houthis claimed killed at least 53 people, have become the largest US military operation in the Middle East since President Donald Trump took office in January. According to one US official, the campaign could last for several weeks.
Houthi attacks on shipping in the Red Sea have disrupted global trade and triggered a costly U.S. campaign to intercept missiles and drones.
Last week, oil prices rose slightly, breaking a three-week downward trend caused by fears of a global economic downturn due to escalating trade tensions between the US and other countries.
Both benchmarks slightly pared gains after rising more than 1% in early Asian trading as China reported a mixed start to the year. Industrial production slowed in January-February, while retail sales growth accelerated slightly, according to government data released on Monday.
China’s State Council on Sunday unveiled a “special action plan” to stimulate domestic consumption and economic recovery amid new U.S. tariffs against China and other key trading partners that threaten to disrupt the global trade order.
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Forecasts
Goldman Sachs analysts have lowered their oil price forecasts, expecting slower growth in the US economy due to duties imposed on countries such as Canada, China and Mexico.
“We are lowering our December 2025 Brent forecast by $5 to $71 per barrel (WTI to $67), our Brent range to $65-80, and our 2026 midpoint to $68 for Brent (WTI to $64),”
– the analysts said.
Oil demand is expected to grow more slowly than previously forecast, while supply from OPEC may exceed forecasts.
Consumer sentiment in the US fell to its lowest level in almost 2.5 years in March, and inflation expectations rose on fears that Trump’s massive tariffs would raise prices and undermine the economy.
Next week, the Federal Reserve is expected to leave the benchmark interest rate in the range of 4.25-4.50%, after cutting it by 100 basis points since September, assessing the economic impact of the Trump administration’s policies.
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